The majority of recent sellers surveyed took steps to get their home ready to list, such as making ... [+] repairs, cleaning and decluttering.

Spring is in the air and home buyers and sellers are coming out of hibernation. New survey data by Realtor.com shows that homeowners are gearing up to sell this spring and summer. According to the report, 64% of prospective 2022 sellers anticipate doing so within the next six months and with high expectations for making a profit.

Still, the potential uptick in newly-listed homes indicates some much-needed relief could be on the horizon for buyers – especially first-timers. Today’s sellers expect to ask for relatively affordable prices and include a higher share of Millennials than last spring, suggesting that more Americans plan to upgrade from their starter homes.

“The start of the spring 2022 real estate season comes on the heels of a historic pandemic-defined period, which saw Americans respond to health concerns and government-induced quarantines by seeking shelter in homes,” said George Ratiu, senior economist and manager of economic research at Realtor.com.

He explained that monetary policy injected an unprecedented dose of financial liquidity into capital markets, leading to record-breaking low mortgage rates in 2021.

Ratiu said, “In the process, housing markets—already struggling with over a decade of under-building—responded with double-digit price increases, which continued from last year into March 2022, with the median-priced home reaching $405,000. Moreover, in a market heavily skewed in sellers’ favor, homeowners have been able to be picky with competing offers, each one waiving contingencies and concessions in order to stand out, with winners generally bringing a full cash offer to the closing table.”

The survey of 3,000 consumers, which was conducted online in February, also asked about the experiences of recent sellers, who said determining the right time to list was the longest stage of the process.

“Our survey data illustrates the importance of helping empower homeowners to take control of the listing process, by providing information about market conditions, prices and seasonal trends, like the best dates to list your home,” said Ratiu. “While sellers are expected to hold the upper hand in 2022, navigating the listing process remains a challenge – particularly for those also buying in today’s fast-paced market.”

Ratiu said homeowners who are ready to move forward with pandemic-delayed plans will find plenty of opportunity this spring and summer.

“Although accelerating inflation is leading to higher housing costs and living expenses, many buyers remain interested in finding a home,” he explained. “At the same time, recent housing trends suggest demand is beginning to moderate as higher mortgage rates push monthly payments out of some buyers’ budgets, underscoring the long-term need for more affordable inventory.”

Survey data suggests some relief is on the horizon for Americans grappling with one of the worst housing shortages of all-time. Almost two-thirds (64%) of prospective 2022 sellers anticipate listing a home within the next six months.

Whether these sellers follow through with their plans will be key to the forecasted 2022 inventory recovery and critical for buyers hoping to find a home before mortgage rates climb even further. In a positive sign that homeowners are serious about listing, many sellers are already getting their homes ready. However, they are doing so with great expectations of the current market, which means buyers should prepare for sellers asking for high offer prices, quick closes, waived contingencies and more.

With the oldest Millennials already 40 years old, these homeowners are playing an important role in adding to the supply of starter homes. Millennials represent nearly half (49%) of sellers who plan to list within the next six months, and many anticipate selling at relatively affordable prices. This is welcome news for first-time buyers, who face fierce competition for limited available starter homes. Combined with rising affordability issues as home prices and mortgage rates climb, survey data offers some hope for first-time buyers, based on:

The Covid housing market has largely favored sellers, and many who recently sold were able to take advantage of bidding wars, fast closings, waived contingencies, inspections, appraisals and more.

At the same time, sellers’ experiences highlight the importance of preparation, especially as buyer demand is beginning to moderate. Even among recent sellers who found success, the majority took steps to get their home ready to list, such as making repairs, cleaning and decluttering. Although many sellers were able to list quickly, 41% said the process took longer than they anticipated.

The majority (80%) of recent sellers sold at or above their asking price. Other top benefits of the competitive market included: buyers forgoing repair concessions (28%), offers within a week (27%) and waived contingencies such as inspections (25%).